28/11/2025
The budget has been released.
Key points to note-
- Increase in rates on buildings.
- Taxi industry VAT to be charged on all fares.
Personal taxation
National Insurance (NI) and income tax thresholds frozen for extra three years beyond 2028, dragging more people into higher bands over time
Amount under-65s can put into cash Isas (Individual Savings Accounts) capped at £12,000 a year from April 2027, with the rest of the £20,000 annual allowance reserved for investments
2 percentage point rise to the ordinary and upper tax rates on dividend income from April, and all rates on savings income from April 2027
Wages, benefits and pensions
Cap limiting households on universal or child tax credit from receiving payments for a third or subsequent child to be scrapped from April
Legal minimum wage for over-21s to rise 4.1% in April, from £12.21 to £12.71 per hour, with the wage for 18 to 20-year-olds rising from £10 to £10.85
Basic and new state pension payments to go up by 4.8% from April, more than the current rate of inflation, under the "triple lock" policy
Amount people can "sacrifice" from their salary - thereby avoiding NI on pension contributions - capped at £2,000 a year from 2029
Help to Save scheme, which offers people on universal credit a bonus on savings, extended and expanded beyond 2027
Housing and property
Properties in England worth more than £2m to face a council tax surcharge of £2,500 to £7,500, following a revaluation of homes in bands F, G and H
Tax charged on rental income increased by 2 percentage points, from April 2027
Transport
5p "temporary" cut in fuel duty on petrol and diesel extended again, until September 2026, before it rises again over six month period
A new mileage-based tax for electric vehicles and plug-in hybrid cars to be introduced from 2028
Regulated rail fares for journeys in England frozen next year for the first time since 1996 (there have been periods when prices rose by less than inflation)
Premium cars to be excluded from Motability scheme, which allows people on certain disability benefits to lease vehicles more cheaply
Business taxes
Thresholds for NI paid by employers also frozen until 2031, increasing costs as wages rise over time
Tax exemption for small packages from overseas retailers worth under £135 scrapped from 2029, following complaints it hinders UK businesses
Remote gaming duty, paid on online casino betting, to rise from 21 to 40% from April 2026
General betting duty, paid on sports betting, to rise from 15 to 25% online from April 2027, with an exemption for horse racing
